Lu Der-yeun, defense correspondent for the United Daily News, based here, wrote the original report. The report states that the tests were conducted but did not specify how many missiles were tested. With a reported range of 1,000 kilometers and armed with a 400-kilogram warhead, the new missile will be able to strike as far north as Shanghai.

Taiwan reportedly plans to build 500 Hsiung Feng (HF)-2E LACMs to be based on mobile launchers along the west coast facing China, and there are plans for a ship- and air-launched version. It is also possible that the HF-2E will be based on the outer island of Penghu, off Taiwan’s southwest coast, allowing it strike deeper inside China…

A Taiwan military officer said the U.S. State Department had been pressuring Taiwan to kill the LACM program for more than a year. However, China has more than 800 Dong Feng (DF)-11 and DF–15 short-range ballistic missiles aimed at Taiwan, so Taipei is unlikely to stop the program. In May 2005, National Defense Minister Lee Jye announced that CIST was developing missiles that could strike China. Lee reminded the public that it was consistent with Taiwan’s “active defense” policy.

“Politicians want this as their chip to deal with Beijing. If Beijing attacks or invades Taiwan, they think they can have the HF-2E as a strike-back force,” a former Taiwan defense official said. A U.S. defense official said the ultimate goal is deterrence…

Hsiung Feng missiles are actually anti-ship missiles developed by the military-run Chungshan Institute of Science and Technology (CIST). The HF-2E is not part of the HF anti-ship program, but was mislabeled to confuse outsiders. There have also been reports that the HF-2E program has been suffering setbacks in its propulsion and guidance systems.

A Taiwan military officer said the U.S. State Department had been pressuring Taiwan to kill the LACM program for more than a year. However, China has more than 800 Dong Feng (DF)-11 and DF–15 short-range ballistic missiles aimed at Taiwan, so Taipei is unlikely to stop the program.

as mentioned in the article and judging by the US’ obvious disapproval of this project, I am inclined to believe the Hsiung Feng IIe missiles were developed indigenously. however, wikipedia does mention that the original Hsiung Feng I missiles developed by Taiwan’s CIST between 1975 and 1978 “is essentially a derivative of the Israeli Gabriel missile.” http://en.wikipedia.org/wiki/Hsiung_Feng_I